Inventory Control and Distribution Systems

An efficient inventory management process can be crucial in healthcare institutions, especially at the sterile processing department (SPD) where efficient transfer of medical items is essential in contributing to surgical preparedness and patient safety. Excessive inventory at Hershey-Chocolate Medical Center has led to operational inefficiencies, congested storage spaces, and a significant financial burden: Inventory Control and Distribution Systems.

The management responded to this by requesting an analysis of inventory control models that would enable better control of their supply levels, distribution accuracy, and waste minimization. Accordingly, this paper discusses four types of inventory systems applicable in sterile processing, including just-in-time (JIT), par level, perpetual, and consignment, and compares how these systems can help create a more controlled, cost-effective, and efficient environment for conducting operations under SPD. It also examines the challenges that an excessive inventory poses for distribution in a clinical environment.

Inventory Systems for Controlled Supply Management

Just-in-Time (JIT) Inventory System

The just-in-time system would aim to reduce existing stockpiles, as supplies would only be accepted when needed. According to Balkhi et al. (2022), this model avoids excessive storage of unnecessary inventory and diminishes expenditure on storage and spoiled items. JIT would be beneficial in the case of Hershey-Chocolate Medical Center, as it can prevent overstocking in the SPD by coordinating supplies with the operating room in real-time.

When used productively, JIT enhances lean stock, which saves space and reduces waste. Nevertheless, such a system requires good vendor relationships and accurate forecasting to avoid shortages that may disrupt patient care.

Par Level Inventory System

The par level system establishes a minimum and maximum level for each item. Supplies are updated whenever a shortage is encountered to a maximum set which is higher than the minimum. This will be a straightforward and foreseeable approach to controlling high-use items in SPD (Walczyk et al., 2024).

It would be particularly helpful with commonly ordered sterile items, where restocking can be administered regularly without overcrowding the storage area. Moreover, it eases the stock assessment and assists the employees in organizing the buying operations in a better way. The use of digital devices, such as barcode readers and the par level system, enables the SPD to automate restocking orders and guarantee faster turnaround times.

Perpetual Inventory System

The perpetual inventory system is a real-time digital tracking tool that keeps a continuously updating inventory record as inventory is received, moved, or used. Each transaction is recorded to provide perfect visibility of current stock levels through the implementation of barcode scanning or the use of RFID. In the case of Hershey-Chocolate Medical Center, this system offers a significant benefit in managing the excessive inventory pile.

It eliminates human errors that are prevalent in counting by hand, optimizes audits, and facilitates early action decisions. In addition, it can be synchronized with surgical case schedules to be able to predict future supply requirements and then allocate inventories (Mbanugo & Uzoka, 2022). Although technology may be costly at the outset, it becomes cost-effective in the long run due to the increased level of accuracy and traceability.

Consignment Inventory System

The consignment inventory model is characterized by the vendor’s placement of goods into the health facility, while ownership of the goods is retained by the vendor until it is used. This will remove the financial load off the hospital and leave SPD with the ability to access the necessities without compromising capital. When the item being offered is costly and has low turnover, such as surgical implants or specialized equipment, consignment is the best choice (Zhang et al., 2022).

It minimizes the possibility of stock expiry and prompts the vendors to keep stock levels in check. In the case of Hershey-Chocolate Medical Center, a consignment of high-cost products may supplement an overall initiative to reduce inventory and enhance budgetary flexibility.

How These Systems Create a Controlled Inventory Environment

Improved Forecasting and Demand Matching

Each of the inventory models enhances the SPD’s ability to align supply with clinical demand. JIT and perpetual systems are dependent on accurate forecasting of usage, which helps eliminate excess inventory in stores. Level systems are less dynamic but ensure the maintenance of supply based on past use.

Consignment provides more access to items without actual ownership, which means that it is both controllable and economical. When used in a hybrid framework, these models all serve to enhance the capacity of Hershey-Chocolate Medical Center to regulate space, costs, and supply preparedness across surgical services.

Enhanced Accountability and Traceability

Advances in inventory systems enhance the record-keeping of supply usage and accountability among employees. Barcodes and RFID tags enable on-time tracking, and these tools can provide warnings about anomalies, such as item absence or expired products, to managers. The tools are also useful in recall management, whereby the response can be quicker in case defective items are detected. In addition, automated data logs reduce human error and provide a clear audit trail for regulatory compliance.

Impact of Excessive Inventory on Distribution

Storage Inefficiency and Workflow Disruptions

Excess inventory occupies valuable space in SPD and can overwhelm storage capacity. Supplies may be stacked improperly, increasing the risk of contamination or damage. Technicians may struggle to locate necessary items quickly, which slows down kit preparation and delays surgical procedures.

A cluttered work environment also impairs productivity, as staff must navigate through disorganized shelves to complete daily tasks (Vaka, 2024). Over time, these inefficiencies compound and affect the hospital’s ability to deliver prompt, safe care.

Increased Waste and Financial Loss

Excessive stock increases the likelihood of expired or obsolete items. Sterile goods have expiration dates, and unused items nearing those dates may need to be discarded. Financially, this results in avoidable losses. Additionally, duplicated orders due to poor visibility can unnecessarily inflate costs.

Hershey-Chocolate Medical Center could reduce these losses by adopting digital systems that flag items nearing expiration and consolidate supply requests across departments.

Disrupted Distribution Schedules

In overloaded inventory environments, distribution staff may find it challenging to organize timely deliveries of supplies to OR suites and other clinical units. Critical items may be misplaced, underutilized, or buried under less urgent stock. This situation increases the risk of missed surgical start times and impairs patient flow (Vaka, 2024). Furthermore, staff time is diverted from patient-centered tasks to sorting and managing supply overages, which reduces overall departmental efficiency.

Conclusion

At Hershey-Chocolate Medical Center, resolving the problem of excessive inventory within the sterile processing department requires a deliberate shift toward structured, data-driven inventory control systems. Just-in-time, par level, perpetual, and consignment models each offer distinct advantages in promoting a lean, responsive, and financially responsible supply environment. When integrated thoughtfully, these systems can reduce waste, improve supply readiness, and strengthen collaboration between SPD and clinical teams. By modernizing inventory management and embracing automation, the department can create a sustainable framework for reliable and safe supply distribution that supports high-quality patient care.

References

Balkhi, B., Alshahrani, A., & Khan, A. (2022). Just-in-time approach in healthcare inventory management: Does it really work? Saudi Pharmaceutical Journal, 30(12), 1830–1835. NCBI. https://doi.org/10.1016/j.jsps.2022.10.013

Mbanugo, C. I., & Uzoka, O. A. (2022). Perpetual inventory management practice applied by stores officers in public tertiary educational institutions in South-East Nigeria. UNIZIK Journal of Educational Research and Policy Studies, 14(1), 1–10. https://unijerps.org/index.php/unijerps/article/view/304

Vaka, D. K. (2024). Integrating inventory management and distribution: A holistic supply chain strategy. International Journal of Managing Value and Supply Chains, 15(2), 13–23. https://doi.org/10.5121/ijmvsc.2024.15202

Walczyk, T., Hill, J. D., Gill, C., Hurowitz, L., Stimler, D., Flax, G., Boreen, C., & Lau, E. (2024). A comparison of inventory management models in automated dispensing cabinets at a large academic medical center. Hospital Pharmacy, 59(3), 318–323. https://doi.org/10.1177/00185787231214416

Zhang, T., Hao, Y., & Zhu, X. (2022). Consignment inventory management in a closed-loop supply chain for deteriorating items under a carbon cap-and-trade regulation. Computers & Industrial Engineering, 171, 108410. https://doi.org/10.1016/j.cie.2022.108410

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Sterile Processing Case Studies Project

Objective

The purpose of the case study is to allow you to analyze information retained over the duration of the sterile processing program and apply that knowledge obtained to provide specific solutions to common issues that may occur within the sterile processing department.

Instructions

Choose two of the four topics listed below:

• Decontamination Principles
• Sterilization Methods
• Preparation of Medical Equipment and Supplies
• Inventory Control and Distribution Systems

Once the two case studies are chosen, answer the questions using your own vocabulary and address the conflicts or issues with solutions specific to your topics of choice. You will utilize your text or other credible sources from the internet to build a thorough paper that contains at least eight main ideas with supporting details regarding the topic chosen and a minimum of three credible references. The paper must be written   with a title page, introduction, body, conclusion, and reference page. Please refer to the rubric regarding specific grading criteria.

Case Study Scenarios

1. Decontamination Principles:

Dr. Sarmiento is a well-known neurosurgeon at Baptist Medical Center. He is known for working on complex cases that involve the spine and other neurological tissues. This past week, his private scrub tech has discovered that dirty neurological instruments have made it into the OR.

The technician consults with the patient care manager of surgical services because the incident has been reoccurring over the past few months. With this knowledge, respond to the following questions:

• What issue(s) have occurred, and what may be the cause of these errors?
• What other additional considerations may the sterile processing tech need to take with instruments exposed to neurological tissues?
• What might the sterile processing department have to do to resolve this issue?
• Thoroughly explain the decontamination process. What steps should take place in the OR? In SPD? Why is cleaning considered the cornerstone of instrument processing?

2. Sterilization Methods:

Kristine, a technician in the sterile processing department, has noticed that after the sterilization of surgical equipment and supplies that at least two out of every four loads sterilized for the day have been moist. She has consulted with her supervisor on effective ways in which she could troubleshoot the concerns with wet loads because it has now affected the department’s work efficiency and quality control.

• Define a wet pack.
• Define a wet load.
• Why might the loads be wet? Provide at least three unique causes.
• What solutions can Kristine apply to ensure that the processed instrument sets aren’t wet?
• Discuss how this issue can affect both the operating room and the sterile processing department. How should Kristine handle the wet packages to ensure quality control?
  

  Inventory Control and Distribution Systems

3. Preparation of Medical Equipment and Supplies:

Over the last month, the operating room has received rigid containers without filters, assembled instrumentation such as Poole suction devices in sterilized sets, and closed instruments within the sterile instrument sets.

• Discuss in detail how each issue listed above can impact safe and efficient patient care.
• Discuss the instrument inspection, assembly, and packaging processes.
• What can the sterile processing technician do to ensure that all items are prepared and packaged correctly?
• How does this situation impact the operating room staff?

4. Inventory Control and Distribution:

The sterile processing department at Hershey-Chocolate Medical Center has an excessive amount of inventory. Management has decided to restructure the inventory system used in their facility and has asked you to research at minimum four different inventory systems that may help with the safe and efficient distribution of medical supplies and are also cost-effective.

• What inventory system may work well for their department? Discuss at least four types of inventory systems and how each could initiate a more controlled environment of inventory for the facility.
• How can distribution be affected by excessive inventory?

Please review the rubric to see how you will be graded for this final project. Ensure that all of these areas are covered to ensure the best achievable score. Before submitting your assignment, check your work using Grammarly.

Length/Formatting Instructions

• Length: 300-word minimum
• Font/Format: 12-point font, Double-Spaced, 1″ margins
• Program/file type: Use a word-processing program, preferably Microsoft Word, to complete the assignment. Accepted File Types: .word, .docx, .pdf
• Part of your grade will depend upon you following proper reference page. If you need help with reference page, please use the
• Before submitting your assignment, check your work using  Grammarly.

You’ll be graded using the following rubric.